Construction Industry Development

Board (cidb)

Strategic Plan, Business Plan and

Budget
- 2009/2010 and MTEF-

Presentation to PPC
Tuesday, 20 October 2009
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Presentation Content
• Overview
– Legislative Framework & mandate
– New Vision, Mission and Strategy
• External Context for 2009/10
• Internal Context for 2009/10
• Strategic Objectives
• Operational Plan
• Key focus for 2009/10
• Performance measurement
• Budget

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 Overview: Legislative Framework & Mandate

CIDB Act 38 of 2000…mandates the cidb to

provide strategic leadership to industry

Context – Purpose of cidb

stakeholders to stimulate sustainable

growth, reform and development
Regulate the construction industry

1st Board and CEO November 2001

First regulations: 2004-SfU, RoC, RoP

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 Overview: Legislative Framework & Mandate

to provide: strategic leadership and an

enabling regulatory and development
framework
for:
Context – Purpose of cidb

• A total construction delivery capability to

achieve South Africa’s economic and social
growth
• Sustainable growth and empowerment of
historically disadvantaged
• Global standards of performance and value
to clients and society

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 Implications of Distilled Mandate

Dual responsibility of cidb

• An enabler/developer - WIP
• A regulator/enforcer of compliance -
Context – Purpose of cidb

a new focus
• Change of direction critical to
demonstrate value add in the
industry

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 Overview: Legislative Framework & Mandate

Legislative Framework & Mandate

 CIDB Act 38 of 2000…mandates the cidb to
establish the National Register of
Contractors:
Facilitates public sector procurement,
delivery and risk management
Supports contractor development
Promotes better performance - improved
quality, safety, health and environment.
 to categorise contractors in accordance with
their capability

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 Overview: Legislative Framework and Mandate
RoC-Benefits

 Support risk management in the tendering process

 Reduce the administrative burden
 To facilitate sustainable growth and transformation of
contractors, enable effective access by the emerging
sector
 Reduce tendering costs to clients and contractors
 Promote minimum standards and contractor best
practice
 Enable access by the private sector
 Provide information on the size, distribution, nature
and development of contractors
 To improve the performance of contractors

c idb
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 Overview: Legislative Framework & Mandate

Legislative Framework & Mandate

 CIDB Act 38 of 2000…mandates the cidb to
establish the National Register of Projects:

•Gather information on the nature, value

and distribution of projects

•Provides the basis for a best practice

project assessment scheme

•Promote the performance of public and

private sector clients

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 Vision & Mission:
• Vision 2012 and Beyond
Progress and building momentum

“A dynamic, innovative and development

organisation that provides strategic
leadership and an efficient service to
stakeholders, leading to a transformed and
competitive construction industry that
delivers quality infrastructure, promotes
economic growth, and an organisation that is
caring for its employees”.

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 Vision & Mission:
• Mission
Progress and building momentum

“To direct and drive an integrated construction

industry development strategy that transforms the
role of industry and stakeholders for sustainable
growth, improved delivery, performance and value to
public and private sector clients, and investors
through strategic partnerships; to strategically and
deliberately promote the empowerment of small,
medium and micro enterprises to improve their
capability and grow the economy; to develop
employees to be meaningful participants in the
organisation”.

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 External Context:
Supporting interventions
Progress and building momentum

• Infrastructure delivery skills

• Public sector delivery
Stakeholder Analysis & Management
5 – Year Review recommendations

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 Internal Context:
• Operation and growth of RoC-see graphs
Progress and building momentum

and tables following this slide

• Specialisation
• Risk Exposure
• Business Systems-
– EDMS
– CRS Software Upgrade

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Stats- Exponential Growth
• Increase in registrations
 Dec 2004 – 1500
 Dec 2005 – 7500
 Dec 2006 – 27500
 July 2007 – 42000
 Dec 2007 – 55 000
 End March 2008 > 65 000; End March 2009 >80 000

P r o je c t e d g r o w th b a s e d o n h is to r ic a l d a ta

100000
90000
80000
Total registrations =
70000 (active + suspended)
60000
No. of registrations

50000 S e rie s 1
40000
30000
20000
10000
0
Dec 04 D ec 05 D ec 06 Dec 07 A pr 08 D ec 08

13
 Class of Works by grading-Sept 2009
C la s s o f w o rk s
G ra d e G B CE ME EP EB SW T O T AL
1 52880 16916 2174 1157 846 7915 81891
2 2198 1527 215 57 156 453 4606
3 490 452 71 35 81 79 1208
4 652 680 103 60 147 87 1729
5 365 409 100 68 117 113 1172
6 372 435 49 27 43 31 957
7 147 189 35 27 17 23 438
8 50 62 13 9 3 6 143
9 26 43 24 16 6 11 126
To ta l 57180 20713 2784 1456 1416 8718 92270

G B : G e n e ra l B u ild in g C E : C ivil E n g in e e rin g M E : M e c h a n ic a l E n g in e e rin g

E P : E le c tric a l E n g in e e rin g (In fra s t ru c tu re ) E B : E le c t ric a l E n g in e e rin g (B u ild in g ) S W : S p e c ia lis t W o rk s

There have been 4,801 upgrades on the Register to date. Black

owned enterprises constitute 84% of all upgrades.
Grading by Province – September 2009
G ra d in g s
Reg io n 1 2 3 4 5 6 7 8 9 T o ta l
Eas te rn Ca p e 1 00 64 44 2 14 4 166 1 03 65 38 6 4 11 0 32
Fre e S ta te 42 19 23 3 59 76 58 36 24 6 3 4 7 14
G au te ng 1 98 14 1 06 2 21 2 445 3 48 3 11 17 1 76 89 22 5 28
In te rn atio n al 4 3 0 0 1 0 5 1 11 25
K w a Z ulu -Na tal2 28 77 1 30 9 32 2 415 2 09 1 87 6 8 26 9 25 4 22
L impo p o 75 60 45 6 14 2 182 1 61 1 31 4 0 0 1 8 6 73
Mpu ma la ng a 68 03 36 6 12 9 175 1 19 82 22 3 0 7 6 99
Nor th W es t 43 93 21 4 47 69 45 32 12 3 0 4 8 15
Nor the rn Ca p e 80 7 53 20 31 22 10 6 2 0 9 51
W e s te rn Cap e 53 49 46 7 13 3 169 1 06 1 03 5 2 20 7 6 4 06
 Actual no. of companies registered
No. of
Designation Active Suspended
Companies
1 62308 951 63259
2 3247 756 4003
3 992 165 1157
4 1478 211 1689
5 950 106 1056
6 780 43 823
7 353 15 368
8 121 1 122
9 78 10 88
Total 70307 2258 72565
 Strategic Objectives:
• Organisational Capacitation
Progress and building momentum

• “Value-added” service delivery

• Research and Development Agenda
• Phase II of the Registers
• Procurement Reform

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OPERATIONAL PLAN & STAFFING STRUCTURE

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 Operational Programmes:
• Programme 1: Growth and Contractor
Progress and building momentum

Development(GCD)- focuses on
promotion of enterprise development,
investment and spending as the basis for
a stable, developing industry and the
participation of the emerging sector.

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 Operational Programmes:
• Programme 2: Construction Industry
Progress and building momentum

Performance- focuses on improved

performance and best practice for an
industry that delivers reliable value to
clients, investors and end-users,
information on construction industry
indicators to inform cidb strategy, policy
makers and stakeholders.

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 Operational Programmes:
• Programme 3: Procurement and Delivery
Progress and building momentum

Management- focuses on enhanced

public sector construction procurement
and infrastructure delivery management
capability of public sector clients enabling
efficient and effective delivery of quality
infrastructure to the public.

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 Operational Programmes:
• Programme 4: Construction Registers
Progress and building momentum

Services focuses on:

– Registration of contractors and both public
and private sector projects
– Regulation to effect improved performance
and best practice of clients and suppliers.

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 Operational Programmes:
• Programme 5: Chief Executive’s Office
Progress and building momentum

focuses on:
– overall strategic leadership and governance
in support of the Board;
– stakeholder consultations and
communications.

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 Operational Programmes:
• Programme 6: Corporate Services,
Progress and building momentum

responsible for:
– financial management including registers
fees;
– human resource administration-HR Admin;
– supply chain management-SCM;
– information technology-IT.

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Key Focus for 2009/10
• Contractor Registration
– Continuous improvement of registration
process
– Regulation amendments
• Project Registration
– Been slow/relaxations
– Reprioritise & Fast track and prioritise I-
Tender RoP
• Develop revenue model-consultation

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Key Focus for 2009/10
• Continue with public sector procurement
reform – streamlining, public sector
capacitation, etc
• Register of Professional Service Providers
(RoPSP)- consultation, regs, pilot, rollout
• Compliance enforcement-NB!
• Public sector delivery improvement – continue
with IDIP: DPW & DoE; DoH, Municipalities
• National Infrastructure Maintenance Strategy –
NIMS-cidb role and budget for implementation

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Key Focus for 2009/10
• Phase II of the Registers-Best Practice
– Quality
– H&S
– Environment
• Benchmarking- benchmarking clubs

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cidb Best Practice Contractor Recognition Scheme

Enablers;
Grade Results
Business, H&S, Quality, Env, etc
SANS / ISO / OSHAS
9

Performance Reports
Management Systems AND
Supply Chain Development

cidb Accredited
Management Systems

cidb Competence Assessment

2
2
9
Value

Standard for
Uniformity
PUBLIC SECTOR

Performance Reports
PUBLIC SECTOR

Construction
Management Plans
PUBLIC SECTOR
Best Practice

Energy Efficiency
PUBLIC SECTOR

Skills / ESDA
PUBLIC & PRIVATE
cidb Best Practice Project Assessment Scheme
Key Focus for 2009/10
• Establish ESDA: funding, operation
• HR Development
• Internal audit process, Risk Management
& Corporate Governance
• EDMS
• Project Database

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Key Focus for 2009/10
• Contractor Development:
– Revised framework - National Contractor
Development Programme -NCDP
• Continue rollout in conjunction with DPW
– W/shops with Provincial DPWs/other
infrastructure department/entities
• New Construction Contact Centres (CCC):
LIMPOPO; NW
• Phase in value-add through CCCs

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Key Focus for 2009/10

• Stakeholder Forum (SF) 2009: 23 Oct 2009

• Nominations for new SF Members for next
two years – Finalised in Oct 2009
• General Stakeholder engagements
• 5-year review recommendations

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Performance Measurement
• Output targets set for each focus area (Section
6 of Business Plan)
• Example

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 Performance Measurement
Programme Strategic Project Operational Target
Objective

Construction Service Excellence Using Business Process31 Mar 2010

Registers Management (BPM) best
Service practice to deliver
sustained, measurable
service excellence.
Service areas include
head office registrations
processing, call centre
and internal query
resolutions unit.

Enhancement ofSoftware systems to31 Dec 2010.

software systems support flexible business
processes, work flow
integration and
performance monitoring.
Software to support
integration of registration
services across head
office and CCC's.

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2009/2010 BUDGET

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Focus of 2009/2010 Budget
• Building human resource capacity
• Establishment of last 2 Construction
Contact Center/s
• Improve value-add at the Construction
Contact Centres
• Improvement of Registers service delivery
• NIMS staffing and operationalisation
• Focus on fraud and corruption/forensics
• Enforcement of compliance

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Focus of 2009/2010 Budget
• Facilitating the establishment of the ESDA
• Phase II of the Registers (Quality, H&S,
Environment)-Best Practice
• Promotion of R&D agenda
• Academic institutions to teach cidb
requirements- start the process
• Benchmarking with international bodies &
benchmarking clubs
• Continued support to 2010 Soccer World Cup
infrastructure procurement-not necessary so far
• EDMS-prioritised

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Focus of 2009/2010 Budget

• Stakeholder management
• Upscale communication:
media/stakeholders/etc
• ICT-hub of operations

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 Summary Budget (kR) (MTEF)
09/10 10/11 11/12 12/13
Organizational income
Registers 34 113 38 272 41 252 44 552
Transfer payments 59 269 63 665 65 959 66 882
Interest income 2 200 2 420 2 662 2 890

Total revenue 95 582 104 357 109 873 114 324

Standard item: Expenditure

Personnel 42 738 49 686 50 887 55 677
Administrative 22 187 26 149 29 992 29 015
Capital 3 070 778 622 617
Operational 27 587 27 744 28 372 29 015

Total expenditure 95 582 104 357 109 873 114 324

 Summary Budget per Programme (kR)
PROGRAMME 09/10 10/11 11/12 12/13

Office of the 8 974 9 529 10 375 10 731

CEO

Corporate 24 995 29 400 28 234 29 887

Services

Growth & 21 133 22 441 24 433 25 270

Contractor
Development

Construction Industry 9 395 9 977 10 862 11 234

Performance

Procurement & 10 687 11 349 12 386 12 811

Delivery

Registers 20 398 21 661 23 583 24 391

95 582 104 357 109 873 114 324

 ………..Thank You
Thank You
Thank You
Thank You

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